X-Rite CEO Michael C Ferrara says his company is excited about the opportunity to achieve greater scale, reduce operational costs and leverage combined R&D efforts.
“With the combined company, we will be in a position to deliver more innovative and high quality solutions,” he says. “We believe this is a strategic combination that will provide value for our shareholders, customers, employees and partners.”
The combined company expects to achieve approximately US$25m of annual operating expense savings in connection with the transaction in year three, with combined gross margins of approximately 63 per cent. During the first year, the company has plans to incur restructuring costs of approximately US$20m. The transaction is expected to be accretive to X-Rite’s EPS during year two of the combined operations.
Amazys Holding chairman Mario Fontana says he also believes this combination offers an exciting opportunity for both companies to come together in a transaction that maximises value for stakeholders.
“Together, we plan to leverage our combined technical resources to deliver the best possible solutions to help drive our client’s businesses,” says Vacchiano Jr.
A strong team of X-Rite and Amazys executives will lead the new organisation. Following the deal, Ferrara will remain CEO, Vacchiano Jr will be named president and COO, Mary E Chowning will remain CFO, and Dr Francis Lamy will be appointed CTO.
Following the completion of the transaction, the Board of Directors will be comprised of nine members, including six current directors of X-Rite and three current directors of Amazys Holding AG.
In the immediate future, X-Rite and Amazys Holding AG will continue to operate as separate companies. Throughout the integration process, brand strategy for both companies and their respective product lines will be reviewed in a thoughtful, deliberate manner to add the most value for stakeholders. Following the transaction’s completion, global headquarters will be located in Grandville, Michigan with the European Headquarters in Regensdorf, Switzerland.